You are twisting my comment and pretending I said something I didn't. I didn't say float was enough to cover their operating costs. I said insurance companeis

You are twisting my comment and pretending I said something I didn't. I didn't say float was enough to cover their operating costs. I said insurance companeis can and often do run for long stretches in which premiums do not cover claims. Float is the way this is accomplished. If an insurance company goes long stretches in which premiums do exeed claims, customers will begin to turn away. Interest on float is free money and therefore float has value regardless of how small the returns. These companies want as much float as possible and offering favorable terms to their clients is a great way to increase total available float.